Top trading ideas by Big Bull Rakesh Jhunjhunwala for 2013

NEW DELHI: Ace investor Rakesh Jhunjhunwala is of the view that India is in a long-term bull market rally, and expects retail and agricultural sectors to be the next big growth story for the Indian markets in the coming years.

Speaking with Nikunj Dalmia of ET NOW, Rakesh Jhunjhunwala said that by 2020, the retail sector would be a $1-trillion business.

If India becomes a $5-trillion economy by 2020, the biggest beneficiary would be the retail sector. At present the retail sector accounts for $400 billion and has the potential to grow as the economy improves, said Jhunjhunwala. "So the kind of growth that is possible is unbelievable and that is what makes me bullish," he added.

He said the Indian markets will do well in the year 2013 on the hopes of monetary easing by the Reserve Bank of India, the government's intent to pass key reforms to boost growth and global liquidity.

Despite all the pessimism, the market is performing extremely well with very good breadth and all technical indicators are extremely positive, he said.

Jhunjhunwala expects the Nifty to cross 6200-6300 in 2013 after a long period of consolidation. He sees growth opportunity in agricultural-based companies such as Rallis India. He is of the view that since food demand is going up year-on-year, but land seems to be the limiting factor.

Further urbanisation in India will lead to even lesser availability of land and food, which is a challenge, and the only way we can increase production is through technology advancements.

"We are using the lowest mode of agrochemicals and seeds. So there is a lot of scope of both the products. And as time will pass, farmers will also get a better price for their produce," said Jhunjhunwala.

Talking about two stocks from his portfolio -- Lupin and Titan Industries -- Jhunjhunwala sees both companies to deliver a growth of 18-20 per cent p.a. Both companies have outperformed the benchmark index in 2012.

Titan Industries has given a year-to-date return of nearly 65 per cent and Lupin gained over 35 per cent compared to a 25 per cent rise in the benchmark index Sensex.

Jhunjhunwala also thinks that Titan Industries should be included in the Nifty 50-stocks as there are no retailing stocks in the index and Titan is a retailer with the highest market cap.